In celebration of GROUNDFLOOR turning two years old, we are taking a stroll down memory lane.  For the next 17 days, we will showcase each of the 17 loans funded by our community of lenders.

In January 2014, we met John Mangham at a private dinner arranged by a mutual friend.  At the time, we had ideas that many different types of projects could be funded on GROUNDFLOOR, including commercial real estate and multi-family.  When John learned about the company concept he was quick to say, "You should be focused on residential, renovate and flip projects. I've got the perfect loan for you.".  And he was right. Most everyone understands the concept of flipping a house thanks to HGTV; so "renovate and flip" loans are an easy sell for our lenders.  Plus, the returns on the loan are good, smaller loans fund much more quickly, and they return money quickly to the lender.

On February 8, 2014 the first loan to be funded by our lenders was a renovation project at 905 Tift Avenue.  Borrower John Mangham had plans to renovate and sell the single family home in the Historic Adair Park neighborhood in Atlanta and decided to borrow $40,000 from the GROUNDFLOOR community of lenders. This was a 6 month, 8% loan with lenders in a first lien position.

In the first 24 hours, Tift was funded 53% with 23 investors pledging $21,000! Needless to say, the team was stoked!  The entire loan amount was funded in about two weeks and we knew our lenders were on to something.  Trouble was, the payments platform wasn't completely ready.  Because the loan was funded under a prior model called 'pledging' (meaning, the lender didn't commit their funds until the loan volume was sold out - they simply made a promise to lend the money), the lender wasn't affected. But the team certainly was! It was a mad scramble for a few days to get the payments process running that would enable all the loan proceeds to be collected and distributed to the borrower.  Ah, the good old days...

Flash forward to August of 2014 when Tift Avenue was sold for $159,000 to Joseph Chenee. We certainly hope Mr. Chenee is loving his new home. Without the 39 lenders, each of whom loaned John an average of $1,025, this happy story wouldn't be a part of our company history. Since the Tift Avenue project, John has offered several other successful projects to our community of lenders.

On August 29, 2014 - only 167 days after it was funded - those 39 lenders were repaid their initial investment + 8% annual interest. For the lender that translated to around $1,066 (using the average investment amount).  Not only did the lenders walk away with extra money in their proverbial pockets; it was a no-hassle process because GROUNDFLOOR makes this kind of investment opportunity available to anyone without any paperwork and without any fees. It's just as no-hassle to reinvest that money in other projects on GROUNDFLOOR, too.

Next stop on Memory Lane - Loan #2: River Park Townhomes...